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Walmart Wants to Sell Cheaper Organic Food. Is That Good or Bad?

For Related Articles and More Information, Please Visit OCA's All About Organics Page and our Safeguard Organic Standards Page.

Walmart is going organic, which, because of its size and market influence, could alter the very meaning of the term.

The world's largest retailer announced Thursday that it would be partnering with Wild Oats, a prominent health food label, to expand the organic offerings in its grocery section and drive down the price of organic foods across the country.

"We know our customers are interested in purchasing organic products and, traditionally, those customers have had to pay more," Jack Sinclair, executive vice president of grocery at Walmart US, said in a company press release. "We are changing that and creating a new price position for organic groceries that increases access. This is part of our ongoing effort to use our scale to deliver quality, affordable groceries to our customers."

Starting later this month, the Wild Oats label will begin to appear in the retailer's grocery sections on approximately 100 USDA certified-organic products, including canned goods, salsa, and spices, among others. On average, those offerings will be 25 percent cheaper than organics sold by competitors, according to the company. Prices on Walmart's existing organic offerings apart from the Wild Oats products, including produce and milk, will not be reduced.

"By partnering with Walmart, Wild Oats is starting a movement that makes it easier than ever for customers to access affordable organic and natural products," Wild Oats CEO Tom Casey said in the release. "Our availability at Walmart will allow us to finally pass along scalable savings directly to consumers.    


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